2024 (6) TMI 383 - SC - Indian Laws

Quantum of compensation to which the appellants are entitled to - Reduction of compensation awarded by the Motor Accident Claims Tribunal - assessment of the income of the deceased - HELD THAT - It is evident that besides generating income from the land owned by the family in the form of sale of paddy and bananas, the deceased was also having income from supply of milk and coconuts to the school. There is also material available on record to show that he worked as a Government contractor. Meaning thereby, to make the lives of his family members comfortable, the deceased was multi-tasking and he was not engaged in a 9.00 to 5.00 P.M. job. The High Court on a very conservative basis assessed the income of the deceased at ₹20,000/- per month, bifurcating the same at ₹8,000/- per month for supply of milk to the school, ₹5,000/- per month from agriculture and ₹7,000/- per month from working as a contractor - considering the material placed on record by the appellants, income of the deceased deserves to be re-assessed as it is established that he was doing multiple works. It also came on record that after his death, the land was lying barren and was not being cultivated. Assessment of compensation cannot be done with mathematical precision. The Motor Vehicles Act, 1988 also provides for assessment of just and fair compensation. In our opinion, considering the material placed on record by the appellants, as has been referred to above, and value of the labour being put in by the deceased in agriculture, it would be reasonable to assess his income at ₹35,000/- per month. The appellants are found entitled to compensation of ₹38,81,500/- with interest @8% from the date of filing of the claim petition till realization. The judgment of the High Court is modified - Appeal disposed off.

Summary

Issues involved:
Reduction of compensation awarded by the Motor Accident Claims Tribunal and subsequent appeal to the High Court for reassessment of the quantum of compensation.

Judgment Summary:

Issue 1: Reduction of compensation by the High Court

The High Court reduced the compensation awarded by the Tribunal based on the income assessment of the deceased. The appellants challenged this reduction, arguing that the deceased had multiple sources of income, including supplying milk and coconuts to a school, agricultural activities, and work as a Government contractor. They contended that the Tribunal's assessment was fair, and the High Court's decision was unjust. The Insurance Company defended the High Court's decision, claiming that the appellants' claims were exaggerated and lacked substantial evidence.

Issue 2: Assessment of deceased's income

The deceased was engaged in various income-generating activities, as evidenced by receipts from the school for milk and coconuts, agricultural produce sales, and earnings as a Government contractor. The appellants argued that the deceased's income was higher than the High Court's assessment, emphasizing the family's dependency on his earnings. The Court acknowledged the deceased's multifaceted work and reevaluated his income at Rs. 35,000 per month, considering the labor value and age multiplier. The revised compensation was calculated at Rs. 38,81,500, with additional amounts for loss of estate, funeral expenses, and loss of consortium.

Conclusion

The Supreme Court modified the High Court's judgment, increasing the compensation to Rs. 38,81,500 with 8% interest from the claim petition filing date. The appeal was disposed of accordingly.